If you would ask the professional traders out there, which tool do they prefer the most for continuation entries. Most of them would say Fibonacci retracement.<br />Fibonacci retracement is even my personal favorite tool for spotting continuation entries.<br /><br />The level of clarity it gives you is just mindblowing and I do not think any other tool or indicator is even close to it.<br /><br />Trust me, I am not bragging about its achievement and what it can do but this tool is a gamechanger.<br />You just need to be able to understand what it does and how to use it precisely.<br /> <br />And this video is all about it.<br /><br />Hi guys, welcome to forex monopoly, my name is Daksh, and today we are gonna talk about Fibonacci retracement.<br /><br />So, there is a very simple reason for the high win rate we get with Fibonacci.<br />And it is the way the price moves.<br />The price always moves in a particular pattern or wave called impulse and correction.<br /><br />If you are not aware of what impulse and correction are, I have added a video to it. You can check it out by clicking the I button.<br /><br />Now just a quick recap of impulse and correction.<br /><br />Whenever the price moves up or down it doesn't move in a straight line.<br />It moves in a form of highs and lows and these highs and lows are formed in a certain pattern or waves called impulse and correction.<br /><br />The price is said to be impulsive when the price moves powerfully in any one direction.<br />And Whenever the price moves very slowly sideways, it is called a correction.<br /><br />So, let us assume the market is up-trending and the price is moving up.<br />So, it will move something like this,<br />It will move up with an impulse then it will correct then if the trend is strong the price will again move up in the same direction.<br /><br />And the price will continue to do the same,<br />Now many of you must be wondering why I am telling you this AND HOW IS IT EVEN RELATED TO FIBONACCI.<br /><br />Well, it is totally related to Fibonacci.<br /><br />Imagine if you could actually find out when a correction is going to end a new impulse is going to start?<br />Wouldn't it be helpful for you?<br />Wouldn't you be able to win trades?<br />Absolutely, you will win trade like a trading god.<br /><br />The thing is correction and retracement are the same things and the Fibonacci retracement is used to find out when a correction or retracement is going to end and when a new impulse would begin.<br /><br />So, a Fibonacci retracement has certain levels to it and traders believe when the price reaches those particular levels the price will reverse or the retracement will end and a new impulse will start.<br /><br />So, this is a Fibonacci retracement tool.<br />It has different levels to it like, 0.236 0.382 0.5, etc.<br />Out of all these levels, 0.382 0.5, and 0.618 are the most used levels and most of the time the price corrects to these levels and then gives an impulse.<br /><br />
